Chapter 2908. To provide for the establishment of an agricultural bank in the Philippine Islands
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CHAP. 2908.— An Act To provide for the establishment of an agricultural bank in the Philippine Islands. March 4, 1907. [[S. 6249](/us/bill/59/s/6249).] [[Public, No. 243](/us/pl/59/243).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, Philippine Islands.Establishment of agricultural bank in, authorized.Four percent interest on stock guaranteed. That for the purpose of aiding in the establishment and operation of such an agricultural bank in the Philippine Islands as the general government thereof may hereafter specifically authorize the Philippine government is empowered to guarantee an income of not exceeding four per centum per annum upon cash capital actually invested by individuals or corporations in such agricultural bank; such guaranty shall be granted by an act of the Philippine Commission which shall contain, among others, the following provisions:
First. Guaranty made to company organized under Philippine laws. The guaranty shall be made to a company organized under the laws of the Philippine Islands, with its principal office in Manila and with branches in such parts of the islands as may be designated by the Philippine Commission. Second. Loans restricted. The bank shall not grant loans except to those engaged in agriculture and with the sole purpose of assisting agriculture in the Philippine Islands. Third. Maximum loans.
No loan exceeding in amount five thousand dollars shall be made except upon the written authorization of the secretary of finance and justice of the Philippine Islands. Fourth. Maximum interest. Interest charged on loans shall not exceed ten per centum *Proviso.*Limit of liability, etc.per annum: *Provided,* That in no event shall the total annual contingent liability under the guaranties authorized by this Act at any time exceed two hundred thousand dollars, and no such guaranty shall continue for a longer period than twenty-five years.
Regulations.For the further security of the Philippine government said government shall provide by the aforesaid act proper rules, including those for determining the cash capital actually invested in such bank and 1283the net income actually received on said capital so invested, and shall provide for supervision by said Philippine government, through the auditing and other appropriate bureaus thereof, of the conduct of the business of the bank. The bank shall make such reports from time to time as to itsReports. receipts and expenditures in such form and substance and sworn to by such officials as may be prescribed by the Philippine government, and its books and accounts shall be at all times open to inspection by any authorized agent of the Philippine government.
Sec. 2. That money paid by the Philippine government pursuant toGuaranty payment a lien on net profits. the aforementioned guaranty shall be a liability of the bank to the Philippine government, and, as such, shall constitute a lien upon and be paid out of the annual net profits of the bank, subject only to the right of the stockholders to receive therefrom four per centum dividends per annum upon the bank’s cash paid-up capital stock. NoPayment of dividends. dividends above four per centum shall be paid, and no profits credited to the surplus fund, either during the period of the government’s guaranty or subsequent thereto, until the Philippine government shall have been repaid in full all sums advanced to the bank under said guaranty.
Obligations of the bank to the Philippine government arising fromLiquidation.Government advances a lien on assets. advances made pursuant to the aforementioned guaranty and existing at the time when the bank shall go into liquidation shall constitute a lien on the bank’s assets, subject only to the payment of the bank’s legitimate debts and the repayment to the stockholders of the par value of the bank’s duly authorized cash paid-up capital stock: *Provided, **Proviso.*Capital stock.That nothing in this section shall be interpreted as a guaranty on the part of the Philippine government to the stockholders of the bank of the par value of the bank’s cash paid-up capital stock when the bank shall go into liquidation.
Sec. 3. That the bank shall not be permitted to hold real estateRealty holdings forbidden.*Proviso.*Temporary acquisitions allowed. beyond that required for business premises: *Provided*, That the temporary acquisition of land as the result of foreclosure, or otherwise, on account of a debt, shall be permitted on condition that land so acquired shall be sold within ten years from the date of acquisition, and all said land not so alienated in good faith shall be forfeited to theForfeiture.
Philippine government. Approved, March 4, 1907.